Danone has cancelled its supply contract with Fonterra and is launching legal action against the New Zealand dairy co-operative in a bid to win compensation for $492 million of losses incurred last year and reputational damage.

The moves follow a scare in August when Fonterra issued a milk powder contamination warning that later tests found was a false alert. University of Auckland head of marketing, Rod Brodie, said whether Fonterra suffered any long-term reputational damage as a result of the court action would depend on the way the company handled the proceedings.

“While it will be expensive for Fonterra perhaps in court with litigation, in terms of its end markets I think Fonterra’s bigger than this.” . . .

January 2014: The UK’s first honey bee reserve has been created in Scotland. From 1 January 2014 it has become an offence to keep any other species of honey bee on the Hebridean islands of Colonsay and Oronsay apart from the black bee (Apis mellifera mellifera).

The black bee is thought to be the only native honey bee in Scotland and the new legislation is designed to protect the species from cross-breeding and disease. . .